II 

118TH CONGRESS 

2D SESSION S. 3863 

To clarify the country of origin of certain passenger motor vehicles. 

IN THE SENATE OF THE UNITED STATES 

MARCH 5, 2024 

Mr. RUBIO introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To clarify the country of origin of certain passenger motor 

vehicles. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Closing Auto Tariffs 

5 Loopholes Act’’. 

6 SEC. 2. CLARIFICATION OF COUNTRY OF ORIGIN OF CER7 TAIN PASSENGER MOTOR VEHICLES. 

8 (a) IN GENERAL.—On and after the date that is 180 

9 days after the date of the enactment of this Act, any arti10 cle classified under heading 8703 of the Harmonized Tar11 iff Schedule of the United States and produced, manufacVerDate Sep 11 2014 02:50 Mar 07, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3863.IS S3863

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1 tured, or that underwent final assembly by a foreign ad2 versary party or an entity owned, controlled, directed, or 

3 operated by a foreign adversary party shall be treated as 

4 originating in the foreign adversary. 

5 (b) DEFINITIONS.—In this section: 

6 (1) CONTROL.—The term ‘‘control’’ has the 

7 meaning given that term in section 800.208 of title 

8 31, Code of Federal Regulations (as in effect on the 

9 date of the enactment of this Act). 

10 (2) ENTITY OWNED, CONTROLLED, DIRECTED, 

11 OR OPERATED BY A FOREIGN ADVERSARY PARTY.— 

12 The term ‘‘entity owned, controlled, directed, or op13 erated by a foreign adversary party’’ includes any 

14 entity for which, on any date during the most recent 

15 12-month period, not less than 25 percent of the eq16 uity interests in such entity are held directly or indi17 rectly by 1 or more foreign adversary parties includ18 ing through— 

19 (A) interests in co-investment vehicles, 

20 joint ventures, or similar arrangements; or 

21 (B) a derivative financial instrument or 

22 contractual arrangement between the entity and 

23 a foreign adversary party, including any such 

24 instrument or contract that seeks to replicate 


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1 any financial return with respect to such entity 

2 or interest in such entity. 

3 (3) FOREIGN ADVERSARY.—The term ‘‘foreign 

4 adversary’’ means any of the following: 

5 (A) The People’s Republic of China. 

6 (B) The Russian Federation. 

7 (C) The Islamic Republic of Iran. 

8 (D) The Democratic People’s Republic of 

9 Korea. 

10 (E) The Republic of Cuba. 

11 (F) Venezuela, while Nicola ́s Maduro is the 

12 president. 

13 (G) The Syrian Arab Republic. 

14 (4) FOREIGN ADVERSARY PARTY.— 

15 (A) IN GENERAL.—The term ‘‘foreign ad16 versary party’’ means any of the following: 

17 (i) The government of a foreign ad18 versary, including any agency, government 

19 instrumentality, official, or agent of such a 

20 government. 

21 (ii) Any entity organized under the 

22 laws of a foreign adversary (or any polit23 ical subdivision thereof). 

24 (iii) Any entity the headquarters of 

25 which is located within a foreign adversary. 


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1 (B) INCLUSION OF CERTAIN ENTITIES OF

2 THE PEOPLE’S REPUBLIC OF CHINA.—The term 

3 ‘‘foreign adversary party’’ includes any entity 

4 substantively involved in the industrial policies 

5 or military-civil fusion strategy of the People’s 

6 Republic of China, including by accepting fund7 ing from, performing a service for, or receiving 

8 a subsidy from the People’s Republic of China 

9 related to such policies or strategy. 

Æ 


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